Economic Confidence Posts Fastest Drop Since 2008 Crisis

Americans’ confidence in the economy has tumbled more since the government shutdown began a week ago than in any week since the global financial crisis started in September 2008, according to Gallup‘s daily survey.

Gallup’s economic confidence index fell 12 points to -34, the polling organization said Tuesday. The 2008 drop was 15 points, to -56, in the week after Lehman Brothers filed for bankruptcy.

As the Journal reported Monday, confidence gauges by Gallup and other private organizations will take on greater importance in gauging the economy’s direction as long as most official economic data remains halted by the government shutdown. Gallup’s daily confidence gauge, which started in January 2008, is based on the public’s assessment of current economic conditions and perceptions of whether the economy is improving or worsening.

This copy is for your personal, non-commercial use only. Distribution and use of this material are governed by our Subscriber Agreement and by copyright law. For non-personal use or to order multiple copies, please contact Dow Jones Reprints at 1-800-843-0008 or visit www.djreprints.com.